A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

NerdWallet defines a "call option" as a contract that gives you the right, but not the obligation, to purchase stock at a "strike price" before the call option's "expiration." The strike price is ...